Amendments to eliminate VAT on pay TV submitted

More than twenty amendments aimed at removing the VAT on pay television were submitted by various political groups, ranging from the far-right National Rally to communist factions, with participation from deputies of the Renaissance and socialist parties.

Amendments adopted by large majority

The amendments were adopted by a vote of 45 to 15, signaling strong support for the proposed change. Currently, traditional pay television services, which broadcast live content, enjoy a reduced VAT rate of 10%, while on-demand platforms like Netflix are subject to a 20% rate.

Canal+ affected by the proposed law

Canal+ provides both live and on-demand services, with the 10% reduced rate applying to most of its operations. The proposed law aims to eliminate this reduced rate, potentially impacting the company’s financial structure and pricing strategy.

Canal+ head criticizes the decision

Maxime Saada, head of Canal+, criticized the move as an "anti-economic" political decision, warning it could threaten the funding of French cinema. He threatened to raise subscription prices and pursue a restructuring plan to offset potential losses.

Political tensions over the measure

Deputies from various parties questioned the government’s motives, suggesting the measure could be a targeted action against Vincent Bolloré’s media empire, which includes Canal+ and Cnews. National Rally deputy Jean-Philippe Tanguy accused the government of hostility toward the media group.

Concerns over impact on French cinema

More than 170 filmmakers signed an open letter warning of the potential harm to French cinema. Some critics argued that efforts should instead focus on shutting down Cnews, which they described as a platform for racist propaganda.

Opposition to tax increases

LR deputy Corentin Le Fur opposed the measure, fearing it could also affect Ligue 1+, a channel that funds French football. He expressed concern over the broader implications for media and sports financing.

Government defends the tax change

David Amiel, the Minister of Public Action and Public Accounts, defended the proposed tax change, stating it would generate 400 million euros for the state. He argued the reduced VAT rate was outdated, reflecting a different era before the rise of on-demand video services.